The Following Information Is Available for Department C for the Month

question 137

Multiple Choice

The following information is available for Department C for the month of August: $$\begin{array} { l r r } & \text { Units } & \text { Cost } \\\text { Work in process, August } 1 \text { (70\% complete) } & 10,000 & \\\text { Direct materials } & & \$ 36,000 \\\text { Direct labor } & & 18,000 \\\text { Manufacturing overhead } & & 24,000 \\\text { Total work in process, August } 1 && \$ 78,000 \\\text { Started in production during August } & 40,000 & \\\text { Costs added: } & & \\\text { Direct materials } & & 108,000 \\\text { Direct labor } & & 48,000 \\\text { Manufacturing overhead } & & 61,040\\\text { Total costs added during August } & & \$ 217,040\\\text { Work in process, August } 31 \text { (80\% complete) } & 4,000 & \\\text { Units completed and transferred out } & 42,000 &\end{array}$$ Materials are added at the beginning of the process. Inspection takes place at the 50 percent point in the conversion process to determine spoiled units. Round unit costs to two decimal places. The company uses the weighted average cost flow assumption.
Department C's conversion cost per unit using the weighted average method is

• A)$2.18.
• B)$2.22.
• C)$2.31.
• D)$3.20.

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Definitions:

Nutritional Intake

The consumption of food and drink considered in terms of its qualities, composition, and its effects on health.

Anorexia

A psychological and potentially life-threatening eating disorder characterized by an obsession with food, weight loss, and controlling eating habits.

Weber's Test

A diagnostic test in audiology to detect unilateral (one-sided) conductive hearing loss and sensorineural hearing loss by comparing sound lateralization between the two ears.

Tuning Fork

A tool that vibrates at a fixed pitch when struck, used in medical examinations to assess hearing and vibratory sensation.